EU seeks new $68bn fund for ailing banks

Brussels — The European Commission wants to create a new financial backstop for ailing banks from its member countries that do not use the euro currency.

Spokesman Simon O'Connor said Thursday that the Commission, the 28-nation bloc's executive arm, is proposing to use an existing €50bn ($68bn) fund currently being used as a backstop for countries' balance of payments.

The 17 EU countries that use the euro have their own backstop mechanism in the €500bn European Stability Mechanism. The new fund would help guarantee stability across the entire EU, O'Connor said.

The change will require unanimous approval by EU governments, which seems far from certain since some nations are reluctant to commit their taxpayers' money to save banks in other countries.